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Growth of investments in real estate

15 December, Milano Finanza

Investments in real estate have grown in the third quarter and the trend has been positive in the last nine months of the year. Between January-September 2017, in fact, the investment volume has been equal to 6.68 billion euro, increasing by 12.4% compared to the same period of 2016. Regarding the quarters, after a first quarter that saw investments for 1.7 billion euro, a second that registered investments for 3.4 billion euro, in the period of July-September, the investments have been about 1.57 billion euro, with a growth of 3.1% compared to the third quarter of 2016. These figures are taken from the survey carried out by Gabetti on the first nine months of 2016. The main operations of the year, in terms of volumes, have been concluded in the second quarter. In the third quarter, we must remember the transfer by Blackstone Real Estate Partners Europe and Allianz Real Estate of the properties Gioia 26 and Porta Nuova 21 (in Milan) for 150 million euro. The investments in this period have focused on the office segment (42.4%), that continues to drive the Italian real estate, registering about 2.83 billion euro. They’re followed by retail investments (17.4% of the total) with about 1.16 billion euro, and by hotels with 735 million euro, covering 11% of the total. Mixed-use properties or mixed portfolios, with 473 million euro, have represented 7.1% of the sector, while industrial/logistic investments have been 279 million euro, representing the 4.2%.

Assisted Living facilities are also present, with 2.9% of the total investments, for a value of 192 million euro, while the residential segment is only 0.3%, with 18 million euro. Finally, the alternative properties, with 993 million euro, have represented 14.9% of the total. Dividing these data according to geographical areas, most of the volumes have been carried out in the North (about 43%). It’s followed by the Centre with approximately 20% and the South with 6% of the total. The North is first also for the number of transactions, 58.4%, followed by the Centre (28.6%) and the South (8.2%), while a 4.9% is not associated to a single area. Going even further in detail, the investments completed in the province of Milan have been 31.5% of the national total, followed by the province of Rome with 17%. Investments in the province of Milan have amounted to 2.1 billion euro, while those in the province of Rome have been 1.13 billion euro. At a regional level, Emilia-Romagna has reported most of the retail investments, while Lombardy has registered the biggest part of the investments in the office segment (47.3%, 1.34 billion euro) and in the industrial/logistics segment (20.8%, 58 million euro).

Source: Milano Finanza

Translator: Cristina Ambrosi